ARPU totaled NIS 83 in the second quarter of 2013, compared with NIS 82 in the first quarter of 2013, primarily due to a decrease in price erosion together with seasonality effects.
Equipment revenues in the second quarter of 2013 totaled NIS 180 million compared to NIS 183 million in the previous quarter. Equipment profitability improved compared to the previous quarter mainly due to the decrease in handset subsidies to large corporate customers.
As a result of the above effects, the Adjusted EBITDA for the second quarter of 2013 increased to NIS 280 million compared to NIS 268 million in the first quarter of 2013.
Financial expenses in the second quarter of 2013 increased by approximately NIS 22 million compared to the previous quarter, due to increased linkage charges in the amount of approximately NIS 15 million as well as due to a one-time expense of approximately NIS 9 million that was imposed on the Company due to the early prepayment of bank loans.Despite the improvement in Adjusted EBITDA, net profit totaled NIS 20 million in the second quarter of 2013 compared with NIS 31 million in the previous quarter, due to the said increase in financial expenses. The Company continued to report robust free cash flow (after interest payments), which totaled NIS 193 million this quarter, an amount similar to that of the previous quarter. Cash flow was positively impacted by the improvement in operating cash flow, which was partially offset by semi-annual interest payments. During the second quarter, the Company made an early prepayment of bank loans amounting to approximately NIS 419 million (approximately NIS 282 million originally maturing in 2014 and approximately NIS 137 million in 2015). Net debt at the end of the second quarter of 2013 amounted to approximately NIS 3.4 billion compared to NIS 4.2 billion at the end of the second quarter of 2012, a decrease of NIS 0.8 billion." Key Financial Results 5 (unaudited)
|NIS MILLION||Q2'13||Q2'12||% Change|
|Cost of revenues||878||1,000||-12%|
|Earnings per share (basic, NIS)||0.13||0.77||-83%|
|Free cash flow||287||313||-8%|
Key Operating Indicators:
|Adjusted EBITDA (NIS millions)||280||423||-34%|
|Adjusted EBITDA as a percentage of total revenues||25%||30%||-5|
|Cellular Subscribers (end of period, thousands)||2,921||3,098||-177|
|Quarterly Cellular Churn Rate (%)||9.4%||8.9%||0.5|
|Average Monthly Revenue per Cellular Subscriber (ARPU) (NIS)||83||101||-18%|
|Average Monthly Usage per Cellular Subscriber (MOU) (minutes)||532||437||+22%|
|No. of Fixed Lines (end of period, thousands)||294||281||+5%|
|ISP Subscribers (end of period, thousands)||572||609||-6%|
|Cellular Segment||Fixed Line Segment||Elimination||Consolidated|
|NIS Millions||Q2’13||Q2’12||Change %||Q2’13||Q2’12||Change %||Q2’13||Q2’12||Q2’13||Q2’12||Change %|